Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.

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Tata Motors, one of the leading commercial vehicle manufacturers globally, has presented a portfolio of 11 products at an exhibition in South Africa.

The display includes a range of vehicle platforms and powertrain technologies, including electric vehicles and traditional internal combustion models, designed for international market applications.

Tata Motors displayed four zero-emission models developed for specific cargo and industrial duties, which include Tata Ace Pro EV, Tata Intra EV, Tata Ultra E.9 and Prima E28.K.

The display also featured next-generation intermediate trucks and mass mobility passenger buses – Intra V30 & V70, Azura 1918, Ultra Prime RE and long-distance buses, the LPO 1618 Magna (44-seater), LPO 1623 Nova (49-seater premium coach), and the LP 909 school and staff transport bus.

Tata Motors maintains a presence across 29 countries in Sub-Saharan Africa, with cumulative regional sales exceeding 340,000 commercial vehicles. The company provides a lineup of over 60 models supported by a network of more than 320 service touchpoints. To support its regional supply chain, the company utilises seven local assembly operations located in South Africa, Kenya, Nigeria, Senegal, Egypt, Morocco, and Tunisia.

Asif Shamim, Head of International Business, Tata Motors, said, “This showcase reflects our continued focus on developing relevant, application‑led mobility solutions for our international markets. The portfolio presented here demonstrates the range of platforms and technologies we are building across segments, including electric vehicles, tailored to different use cases and operating conditions. It also reflects the strength of the engineering and development capabilities behind these products, enabling us to deliver solutions that are practical, reliable and built to support customer productivity.”

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German technology company Bosch has announced a new joint venture with Brakes India (BIPL) and Wheels India (WIL), both companies of the TSF Group, to advance the development and manufacturing of air systems for commercial vehicles.

The partnership is structured as a 50:50 joint venture between Bosch and the TSF Group companies and is expected to begin operations by end-2026, pending regulatory approvals.

The joint venture will concentrate on the engineering, manufacturing and sales of electronically controlled and software-driven modules. The product portfolio will include systems for – air compression, air processing, air suspension and air parking brakes.

The entity will be headquartered in Chennai, with supply chain management integrated across Bosch, Brakes India and Wheels India.

Guruprasad Mudlapur, President, Bosch Group in India and MD, Bosch, said, “This joint venture is a decisive step to shape the future of advanced air systems. By integrating premier engineering and manufacturing prowess, we are co-creating state-of-the-art, intelligent modules that will empower our customers globally to build more advanced commercial vehicles.”

Sandeep Nelamangala, Joint MD, Bosch and President of Bosch Mobility India, said, “The commercial vehicle industry is at a pivotal moment, shifting from mechanical hardware to software-driven architecture. With air systems being an important portfolio extension, the planned joint venture enhances Bosch’s overall commercial vehicle motion management portfolio, strengthening its role in software-driven mobility.”

Sriram Viji, MD, Brakes India, said, “This milestone marks a step towards building a more integrated, system-level approach for OEMs in the commercial vehicle space. We bring our strengths as one of the leading suppliers of pneumatic braking systems. Through this joint venture, we will be able to offer air braking system parts for e-enabled future mobility to customers. We look forward to supporting the industry’s shift towards more advanced, electronically controlled and software-driven systems.”

Srivats Ram, Chairman & Managing Director of Wheels India, added, “Wheels India has been a pioneer in air suspension systems for buses in India for over three decades. Over this period, we have built strong relationships with both OEMs and end users through consistent product quality and service. We are pleased to collaborate with Bosch on this development initiative to advance electronic air suspension systems for the global customers.”

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The Automotive Research Association of India (ARAI), a leading automotive R&D organisation set up by the automotive industry with the Government of India, has launched a series of administrative and technical initiatives to support bus body builders navigating the national certification framework.

The updates are structured to lower compliance expenses, minimise paperwork and reduce the processing timeline for vehicle type approval.

Under the updated framework, ARAI has established a Support Cell to assist manufacturers with documentation and pre-application design verification. The association has also introduced a website containing regulatory guidelines and simplified data templates, such as standardised variant lists and checklists, to address Worst-Case Selection Criteria.

Applicants must follow a three-level compliance architecture that incorporates physical safety verifications and mandatory video inspections.

The system enforces the Bus Body Code, implemented under the Motor Vehicles Act, 1988, and the Central Motor Vehicles Rules (CMVR), to standardise vehicle construction and safety metrics across the manufacturing sector. The rules require compliance with distinct Automotive Industry Standards (AIS):

• AIS 052 (Rev.1): Governs structural requirements and design safety for all buses with a seating capacity of 13 passengers plus the driver (13+D) and above, as mandated by GSR 159 (E).
• AIS 153: Sets safety criteria, fire protection rules, emergency exit locations, and passenger comfort standards for buses exceeding a 22-passenger capacity, excluding the driver (22+D).
• Specialised Standards: Includes AIS-119 (Rev.1) for sleeper coaches and AIS-063 for school buses.

The operational updates follow a regulatory directive issued by the Ministry of Road Transport & Highways (MoRTH). Regional Transport Offices (RTOs) are restricted from registering new inter-city and sleeper buses until completed safety checklists are uploaded directly to the government’s VAHAN portal by manufacturers, body builders and inspecting officers.

Dr Reji Mathai, Director, ARAI, said, “ARAI has always been committed to empowering ecosystem stakeholders be it legacy corporations, start-ups or MSMEs. We want to assist the bus body builders in their certification process at all stages including development and testing before they apply for certification. This will ensure that safety remains our utmost priority and consequently a reliable transport system for the public is built in our country. To encourage widespread adoption of these services, we have also introduced substantially optimised pricing structures. We aim to make it easier, faster and cost-effective for all stakeholders to uphold the best standards of passenger safety. The type approval cost had been drastically reduced to INR 1.4 million + GST, which is about 50 percent reduction from a normal case. Additionally, time for type approval process can be fast forwarded to anywhere between 60 days – 90 days, depending upon the readiness of the applicant.”

The revision limits the baseline type approval fee to INR 1.4 million plus GST for applications containing up to 100 vehicle variants, while the processing window has been adjusted to run between 60 and 90 days depending on initial applicant documentation.

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German automotive major MAN Truck & Bus recently unveiled the MAN eTGM at the Transpotec Logitec trade fair in Milan, expanding its battery-electric vehicle line-up into the mid-range distribution segment.

The introduction of the 16-tonne truck establishes a uniform electric commercial vehicle portfolio ranging from 12 to 50 tonnes, bridging the gap between the lightweight eTGL and the heavy-duty eTGX and eTGS series.

The e-truck features a permissible gross weight of 16.01 tonnes (with a 16.5-tonne option) and a chassis payload capacity of approximately 10.6 tonnes. It is designed for urban and regional distribution, municipal use and construction transport, the e-truck also supports trailer operations up to a gross combination weight of 33 tonnes. Operating in the over 16-tonne category provides transport companies with road toll reductions in several European markets while assisting fleets in meeting EU CO2 emissions targets.

The eTGM utilises a modular battery-electric system derived from MAN’s heavy-duty truck platforms. It is powered by the MAN eCD210 electric drive, which produces 210 kW (285 hp) and a maximum torque of 800 Nm, paired with a MAN TipMatic 2 transmission. Operators can configure the vehicle with two to four battery packs, providing a total usable capacity of up to 320 kWh and a maximum operating range of 480 kilometres.

Friedrich Baumann, Member of the Executive Board for Sales & Customer Solutions at MAN Truck & Bus, said, "With the MAN eTGM, we are putting the ideal electric solution for inner-city and regional distribution transport on the road right now. It is the logical conclusion to our eTruck portfolio and makes MAN a true full-range supplier of battery-electric commercial vehicles."

For body assembly, the chassis includes optimised wheelbases, standardised interfaces and a mechanical power take-off shaft (mPTO) to allow the integration of conventional body designs without extensive modification. Alongside the eTGM premiere, MAN showcased its broader decarbonisation ecosystem at the trade fair, including the heavy-duty eTGX equipped with Megawatt Charging System (MCS) technology, charging consultancy services and digital fleet connectivity tools.

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